Collection rate
What is collection rate?
Collection rate is the percentage of billed membership revenue you actually receive. If you billed $30,000 and collected $28,800, your collection rate is 96%. The gap is money you earned, are owed, and don’t have.
How to calculate it
Collection rate = revenue collected ÷ revenue billed × 100
Measure over a full billing cycle including retries — measuring the day after billing makes it look worse than it is.
What good looks like
Direct debit gyms typically run high, because most failures are timing and clear on retry.
Card-heavy gyms run lower, because cards fail for reasons a retry can’t fix — expiry, replacement, loss.
A rate drifting down usually means expiring cards accumulating, not members refusing to pay.
Why it matters for your gym
A 4% collection gap on $30,000 a month is $14,400 a year. That’s revenue you’ve already earned — no marketing, no new members, no extra classes. Just collected.
It’s also a churn signal in disguise. Uncollected payments become lapsed members if nobody chases them, so collection rate and retention are closer than they look.
How PATO handles it
Collection rate sits alongside MRR in your billing view, updated as payments settle. Failures are flagged when they happen rather than discovered at month end.
PATO